QUESTION 19 Last month, sellers of good Y took in $100 in total revenue on sales of 50 units of good Y. This month sellers of good Y raised their price and took in $120 in total revenue on sales of 40 units of good Y. At the same time, the price of good X stayed the same, but sales of good X increased from 20 units to 40 units. We can conclude that goods X and Y are (Hint: Recall that Total Revenue=Price * Quantity) complements, and have a cross-price elasticity of 0.60 complements, and have a cross-price elasticity of 1.67 substitutes, and have a cross-price elasticity of 1.67 substitutes, and have a cross-price elasticity of 0.60 QUESTION 20 The government can reduce the inefficiency associated with a monopoly through a system of patents and copyrights. True False QUESTION 21 if government officials break a natural monopoly up into several smaller firms, then the average costs of production will increase. the average costs of production will decrease. competition will force firms to produce surplus output, which drives up price. competition will force firms to attain economic profits rather than accounting profits. QUESTION 22 A Monopoly Firm. Price, cost, marginal revenue of diamond $1,000 800 600 B 400 200 -200 MR 400 8 10 16 20 Quantity of diamonds DeBeers' profit maximizing level of output is DeBeers' profit maximizing price is QUESTION 23 Classify the following as a government-enforced barrier to entry, a barrier to entry that is not government-enforced, or a situation that does not involve a barrier to entry. - + The US Government grants a patent on a pharmaceutical company's technologies related to a COVID-19 vaccine discovery A. government-enforced barrier to entry Amazon is able to use seller data to charge lower prices (predatory pricing) for goods that have well-established demand. B. a barrier to entry that is not government-enforced NStar is the only electric provider in a town C. a barrier to entry that is not government-enforced : Currently, more workplaces prefer Zoom to other video conferencing softwares based on a published survey in PC Mag D. does not involve a barrier to entry